The Andean Development Fund, or CAF, approved a $200 million loan on Tuesday to finance the final construction of three segments of the Transoceanic Highway, a roadway project aimed at promoting trade between Brazil and Peru. The head of the CAF, Enrique Garcia, said in a press release that the loan will be used to finish construction on segments two, three and four of the highways southern corridor in Peru.
Segment two stretches from the town of Urcos, in the Cusco department, to Puente Inambari, in the Madre de Dios department. Segment three connects Puente Inambari to the town of Iñapari, located on Peru’s southern border with Brazil and Bolivia, while segment four also begins in Puente Inambari but finishes in Azángaro, a town located in the southern Puno department.
“We believe the corridor will improve the commercial flow from Peru with Brazil’s western center and northern Bolivia, to the basin of the Pacific Ocean,” said García. “It will strengthen the route for the interconnection and development of an important geographical zone like Peru’s southern region and its integration with Brazil and Bolivia.”
The Transoceanic Highway will connect the southern Peruvian ports of Ilo, Matarani and Marcona to the Brazilian ports of Rio de Janeiro and Santos. The mega project entails the repair and new construction of roughly 2,600 kilometers, or 1,615 miles, of roads and 22 bridges.
Peruvian authorities say it will promote development due to an increase in forestry, agriculture, and mining investment. However, environmentalists say the highway will also have grave environmental and social impacts on the region, and jeopardize sustainable eco-tourism.
